severing ties with Canada for tax purposes
Here is a good article, simply written, about what we need to do to make sure we sever ties with Canada for tax purposes:
http://caribpro.com/Caribbean_Property_ ... In_Bermuda
http://caribpro.com/Caribbean_Property_ ... In_Bermuda
[quote="IAMBOG"]The thing is, the Canadian government likes to keep things in shades of grey, not black and white. That said, my principal (who is reliable and trustworthy) says our school has had 120 teachers go through it in the last seven or eight years and, as far as she knows, nobody has had a problem when they returned.[/quote]
Apparently, Canadian ex pats get nailed for taxes when they return quite often. I read an article by an international tax accountant from Vancouver and he talked about the many different scenarios where this would happen. I cannot seem to find the piece right now but will post it once I do.
Apparently, Canadian ex pats get nailed for taxes when they return quite often. I read an article by an international tax accountant from Vancouver and he talked about the many different scenarios where this would happen. I cannot seem to find the piece right now but will post it once I do.
The best advice we were given when we went through the process was to talk to an accountant and get our hands on a copy of 'Canadians Resident Abroad' by Garry Duncan.
On the advice of our accountant skilled in this field we filled in the NR73e form (determination of residency status) and sent it off. We were warned that we might not get a reply but a year later we received some correspondence stating that our information had been received -- though no mention of whether or not we passed their test. However, since then we've not had any troubles over us not filling out Canadian taxes. (Though they did ask for some GST money back in the year we left.)
The only ties we kept with Canada were our passports, drivers licenses and credit cards.
On the advice of our accountant skilled in this field we filled in the NR73e form (determination of residency status) and sent it off. We were warned that we might not get a reply but a year later we received some correspondence stating that our information had been received -- though no mention of whether or not we passed their test. However, since then we've not had any troubles over us not filling out Canadian taxes. (Though they did ask for some GST money back in the year we left.)
The only ties we kept with Canada were our passports, drivers licenses and credit cards.
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As if you needed more excuses to sever your ties with Canada, read this
http://www.vancouversun.com/business/bc ... story.html
Although I don't trust the Fraser Institute, its food for thought.
http://www.vancouversun.com/business/bc ... story.html
Although I don't trust the Fraser Institute, its food for thought.
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Hi mysharona,
I have to admit that this is one reason why we decided to leave Canada for awhile. I have seen reports that have said that within 10 years we will be paying 60% of all we earn to taxes. This is simply unjustified, Canadians need to start looking after themselves, not depending on the government to do everything. Short of the Communist nations, I think Asia has learned this lesson well.
Thanks!!
I have to admit that this is one reason why we decided to leave Canada for awhile. I have seen reports that have said that within 10 years we will be paying 60% of all we earn to taxes. This is simply unjustified, Canadians need to start looking after themselves, not depending on the government to do everything. Short of the Communist nations, I think Asia has learned this lesson well.
Thanks!!
I guess my question is how long do you plan to be away?
We have purposely kept our residency, though we have cancelled our medical insurance because we want to continue to contribute to our RESPs and RRSP. We still get money from the Federal Government for our RESPs and As well as we are planning on returning we would like to continue to contribute to our CPP. (I know, I know there are people who say it won't be around by the time we retire.)
I have been torn about going through the process of claiming non-residency but as we are only going to be gone this time 2 or 3 years at the most, I don't think it worth it. I figure we will put as much in RRSPs as we can.
The country we are in does not have a tax treaty but we are able to deduct the taxes we have paid. As well, we are able to claim our helper's salary.
Also, my understanding is your first year you will be considered a resident anyways because you have to be out of country for 6 months. The only way around it is to leave in June.
We have purposely kept our residency, though we have cancelled our medical insurance because we want to continue to contribute to our RESPs and RRSP. We still get money from the Federal Government for our RESPs and As well as we are planning on returning we would like to continue to contribute to our CPP. (I know, I know there are people who say it won't be around by the time we retire.)
I have been torn about going through the process of claiming non-residency but as we are only going to be gone this time 2 or 3 years at the most, I don't think it worth it. I figure we will put as much in RRSPs as we can.
The country we are in does not have a tax treaty but we are able to deduct the taxes we have paid. As well, we are able to claim our helper's salary.
Also, my understanding is your first year you will be considered a resident anyways because you have to be out of country for 6 months. The only way around it is to leave in June.